1-2-3 Model

Updated: 08/29/10

Signal: YELLOW

S&P TTM P/E	16.12	Good
Last Fed rate increase	A while back	Good
S&P 500 45 week SMA	1108.55	Bad

Note: Fed raised discount rate, not fed funds on 2/19.

The 1-2-3 Model was developed by Dr. Steve Sjuggerud.

It is defined as:

Is the stock market expensive? (S&P TTM PE > 17)
Are the Feds in the way? (Fed Rate hike in last 6 months)
Is the market acting badly? (S&P 45 week SMA)

GREEN is all three in the investor’s favor

YELLOW is any two in the investor’s favor

RED is only one or less is in the investor’s favor.

For more information. Please Google: buy sell hold Dr. Steve Sjuggerud

This is a page is beta. I am sharing this information since I am experimenting with the concept of using Dr. Steve Sjuggerud’s 1-2-3 model for MI screen switching. In my case GREEN: RS26 1-4 HTD 15, YELLOW: YLDEARNYEAR2 HTD 1-4 HTD 8, RED: CASH

This page will be available as long as I find it useful for my portfolio and will be updated on the weekend (Saturday or Sunday).

Michael

1-2-3 Signal history

August 8, 2010: YELLOW
June 27, 2010: RED
June 18, 2010: YELLOW
May 23, 2010: RED
August 8, 2009: YELLOW
August 1, 2009: GREEN
July 18, 2009: YELLOW
June 15, 2009: RED